[Smidge.Com] - A virtual, actively managed, multi-asset digital currency fund

[Smidge]

Almost end of the week any updates

Hi freedomno1,

Sorry for not being so responsive this week. On the other side, we did not have any announcements and activity in the thread was rather low.

[Smidge]

I'd like to ask about the fund manager's perceptions of the implications regarding German Finance Ministry news as pertaining to the fund.

http://www.dw.de/germany-lends-real-value-to-bitcoin-virtual-money/a-17038675

This news came out after Smidge management decided to hold off on the IPO to clarify legals and share structure.

The only negative implication I can imagine is the possibility of profits being taxed, however, now the Smidge team has an opportunity to consider this as they finalise the working arrangements of the fund, so perhaps it is positive.
As I take it, the decision by the GFM to declare bitcoin as money also legitimises investments, and so a fund such as this operated from Germany (I think?) could mitigate some of the percieved risk as mentioned by others in this thread regarding the legality of virtual securities exchanges.

Hi Vexual,

As you already pointed out, the main change is the way of taxation (BTC are not taxed like your regular salary any more, but through a withholding tax that applies to any income through investments since 2009). I think this is a better solution, but it does not change the working arrangements of the fund. We will announce some changes regarding that soon, as mentioned before.

[freedomno1]

Almost end of the week any updates

Hi freedomno1,

Sorry for not being so responsive this week. On the other side, we did not have any announcements and activity in the thread was rather low.

No worries, once in a while the market gets interesting and it nice to view a second opinion.
I agree with you on the AM position it takes patience till the units are ready and hashing, and the cause of the crash was eb if you read the AM thread and not any real news its still seems like a good investment, volatile but that's normal of all bitcoin securities. But in full agreement with the need for BTC liquidity.
Glad to hear your fund now has LTC-Global Voting rights as well, helps to keep aware of the newest IPO's and even I must admit the speculators help boost that assets price whistle

Thanks for the snapshot looking forward to Mid-September

[Smidge]

Smidge.Com Weekly Snapshot

Quick Summary:

Another week with an even sharper rise of BTC/USD leading to a further decline of LTC/BTC. DCX lost 12.45% in total this week, making our 9.54% look a bit better compared to a normal portfolio. Total NAV is down 17.57% because we had one large share buyback of 75 BTC, but managed to get new investors on board worth 40 BTC. We will continue to fill up the rest quickly. Current investors are lucky for being on board once again because our balanced exposure to both BTC and LTC securities is really evening things out. Expect a sharp rise in fund NAV once LTC catches up (which it usually does with a certain delay).

We will have more mid September IPO details for you in the coming weeks, still in a lot of discussion.

Balance Sheet:
https://docs.google.com/spreadsheet/ccc?key=0AgLGW6ARhmFLdDVyLUFPYjBHX0FIWWxXTy1Bc09uaVE&usp=sharing (Please note that the format is not final, still tweaking a few things here and there. Columns "E" and "I" are hidden for a clearer view.)

Comments:

• The LTC/BTC decline has us steadily buying LTC, providing a nice cost average effect. As soon as the trend turns, we expect to see a sharp rise in fund NAV because of this exposure. MtGox adoption is still up in the air, but will most likely also boost prices
• ASICMINER has provided even more attractive buying prices, getting our average buy price down to under 3 BTC, which is not bad for a fund operating since end of July
• MYMINER decided to buy back all shares, which we obviously accepted
• Management fee from this week has been fully reinvested, while we operate in private mode
• Please note that dividends per share are still quite low and will be reinvested before IPO, this is due to the reason that we did not invest all of the additional coins. As discussed previously, we will not invest in just anything because excess coins are available

Again, I would like to thank everyone for their trust, the great support, criticism and questions that we received. I hope to be able to meet everyone's expectations in the long run!

[bbxx]

Ok so 1/4 fund in refrigator - ltc global no divs
1/4 fund in btc frozen no divs
1/4 fund in amc/am good divs

Rest wasted in mining bonds, some dead like icedrill, satoshi divs

2200 shatoshi for 2 000 000 satoshi stock

False report again about share value,
am should be 2.23 (18 bitcoins lie) instead 2.75
Amc should be 0.032 instead of 0.54 (7 btc lie)
Litecoins are 0.0188 not 0.2 so another few btc

If you post raport ensure you have correct values.
Every week you are loosing money and hiding losses here and there.

Please create true raport when how much you have sold/bought at what price.
In raport as above you can steal btc by making good trades and hiding it.

[Smidge]

Ok so 1/4 fund in refrigator - ltc global no divs
1/4 fund in btc frozen no divs
1/4 fund in amc/am good divs

Rest wasted in mining bonds, some dead like icedrill, satoshi divs

2200 shatoshi for 2 000 000 satoshi stock

False report again about share value,
am should be 2.23 (18 bitcoins lie) instead 2.75
Amc should be 0.032 instead of 0.54 (7 btc lie)
Litecoins are 0.0188 not 0.2 so another few btc

If you post raport ensure you have correct values.
Every week you are loosing money and hiding losses here and there.

Please create true raport when how much you have sold/bought at what price.
In raport as above you can steal btc by making good trades and hiding it.

Hi bbxx,

I have to tell you yet again that you could take at least 5 minutes to read through this thread before trolling and hinting about lying, stealing etc. You would have noticed that we use the 7d avg for valuation since the start. The valuations would have been much higher last week because of this, so we are (of course) applying this both ways.

By the way, did you notice that there is a column "I" that shows the percentage of the portfolio? ICEDRILL is 1.32% of it (I posted that before aswell) and is a purely speculative position. LTC-GLOBAL is paying divs too (monthly), so you didn't even get that right...

[bbxx]

It is not a scam accusation. Please try to be transparent.
If you say NAV it should be calculated with actual value not unicorn hope based on your average.
Please add column with real recent prices.

In sheet there is lie, total vaule, it is not.

More detalied sheet is must...

Monthly 0.3% is nothing in the world od bitcoins so ltc global funds are frozen.
If you will try to sell it you will loose year or more of divs so... Lol.

[Progressive]

The hidden column can be seen only if I copy the spreadsheet (it is not showable in read-only mode). I think that % could be always visible.

[Smidge]

It is not a scam accusation. Please try to be transparent.
If you say NAV it should be calculated with actual value not unicorn hope based on your average.
Please add column with real recent prices.

In sheet there is lie, total vaule, it is not.

More detalied sheet is must...

Monthly 0.3% is nothing in the world od bitcoins so ltc global funds are frozen.
If you will try to sell it you will loose year or more of divs so... Lol.

Hi bbxx,

The decision to use 7d avg has been made long ago. How would you value i.e. LABCOIN on Aug 28th? Get the 7am value of 0.0018, or the 10am value of 0.0037? Nope. This is a long-term asset fund, not a daytrading operation.

If you want my explanation on the LTC-GLOBAL position, it is not about the dividends. It's an investment for a higher valuation of the share price in the future, as trade volume is steadily rising (did you read the report 2 weeks ago?). Plus, it's about voting rights and getting more influence.

[Smidge]

The hidden column can be seen only if I copy the spreadsheet (it is not showable in read-only mode). I think that % could be always visible.

Hi Progressive,

Sorry I didn't know that. I just made it visible, thought you could show/unshow it in read-only.

[alexius89]

is there already a fixed date for the coming IPO?

[jeffshed]

hi guys,

i just don't understand some of the strategies. he's bought and held ciphermine for personal reasons which is now like 1/3 of the value.
didn't someone say thats a bad investment?

He's hedging a lot on the rise of LTC. what if that assuption doesn't come true? why is exposure to LTC a good thing. seems risky.

buying to get average buy price of AM down?

holding basic when it's unfortunatly going to act practically like a PMB?

I just don't get some of these things.

sorry if i'm a bit off the mark...just my take on things

[ThickAsThieves]

hi guys,

i just don't understand some of the strategies. he's bought and held ciphermine for personal reasons which is now like 1/3 of the value.
didn't someone say thats a bad investment?

He's hedging a lot on the rise of LTC. what if that assuption doesn't come true? why is exposure to LTC a good thing. seems risky.

buying to get average buy price of AM down?

holding basic when it's unfortunatly going to act practically like a PMB?

I just don't get some of these things.

sorry if i'm a bit off the mark...just my take on things

Decent questions.

[creativex]

holding basic when it's unfortunatly going to act practically like a PMB?

I got this one smidge.

That's not even close to accurate jeffshed. bASIC-Mining has increased it's hashrate by 52.6% in the past month and has a paid order for hardware that represents another 55.7% hashrate increase for delivery next month. Perhaps you've confused bASIC-Mining with ActM? I see nothing in ActM's fairy dust press releases to indicate they'll come off their unimpressive 430Gh/s hashrate before Thanksgiving.

[Smidge]

hi guys,

i just don't understand some of the strategies. he's bought and held ciphermine for personal reasons which is now like 1/3 of the value.
didn't someone say thats a bad investment?

He's hedging a lot on the rise of LTC. what if that assuption doesn't come true? why is exposure to LTC a good thing. seems risky.

buying to get average buy price of AM down?

holding basic when it's unfortunatly going to act practically like a PMB?

I just don't get some of these things.

sorry if i'm a bit off the mark...just my take on things

Hi jeffshed,

CM is a strategic investment in a company (there's an actual company behind it) with a great team of very bright people, having great ideas for the present and future. I have commented on this topic numerous times. It has nothing to do with personal reasons, it is about business only.

The LTC positions have been increased to maximize the cost average effect and the profits once the LTC price follows up, which it usually does. It has already shown a tendency for that btw.

AM shows some selling panic at the moment. The operation is one of the most stable ones out there, so we are looking at more attractive buying prices. Losses are losses if you realise them, which we are not doing at the moment. Quite the contrary.

And you're not off the mark, I'm happy to answer good (and new) questions. Thank you.

[Smidge]

holding basic when it's unfortunatly going to act practically like a PMB?

I got this one smidge.

That's not even close to accurate jeffshed. bASIC-Mining has increased it's hashrate by 52.6% in the past month and has a paid order for hardware that represents another 55.7% hashrate increase for delivery next month. Perhaps you've confused bASIC-Mining with ActM? I see nothing in ActM's fairy dust press releases to indicate they'll come off their unimpressive 430Gh/s hashrate before Thanksgiving.

What he said.

[Smidge]

Smidge.Com Weekly Snapshot

Quick Summary:

BTC/USD is consolidating this week and found a bottom at about 122. LTC/BTC has therefore gone up a bit, which might be the start of a (long anticipated) reversal. DCX lost another 11.63% in total this week, making our 6.90% look pretty decent compared to a standard portfolio. We had two small share buybacks of 9 BTC, but are getting new investors onboard. Again, our balanced exposure to both BTC and LTC securities is really evening things out. The next weeks are looking to be profitable if the described trends continue.

We will have more mid September IPO details for you in the coming weeks, still trying to get the structure, legal part etc. done.

Balance Sheet:
https://docs.google.com/spreadsheet/ccc?key=0AgLGW6ARhmFLdDVyLUFPYjBHX0FIWWxXTy1Bc09uaVE&usp=sharing (Please note that the format is not final, still tweaking a few things here and there. Columns "E" and "I" are hidden for a clearer view.)

Comments:

• As stated yesterday, ASICMINER shows some selling panic at the moment. The operation is one of the most stable ones out there, so we are looking at more attractive buying prices. Losses are losses if you realise them, which we are not doing at the moment. Quite the contrary
• MYMINER position has been liquidated, as they bought back all shares
• Management fee and dividends from this week have been fully reinvested, while we operate in private mode

Again, I would like to thank everyone for their trust, the great support, criticism and questions that we received!

[kandelawa]

So, I can suppose, that the IPO will be this month?
Can I choose on which plattform i'll get the shares?
At the moment I would prefer btct.co
breetz stefan

[mrtchipr]

So, I can suppose, that the IPO will be this month?
Can I choose on which plattform i'll get the shares?
At the moment I would prefer btct.co
breetz stefan

I'm against btct.co

I would prefer havelock

[freedomno1]

Irrelevant as they have approved listings on both exchanges 
You  can push shares to either exchange on the IPO I believe